Management Decision Models (MDM) are a class of software applications and methodologies that provide decision-makers with new information about their business to help them address key business issues. MDM are flexible, data driven, software tools used to predict the operational effect of process, design, or technology changes on productivity and other business performance measures, as well as the financial impact of such changes. MDM may be customized to address questions relating to any business domain, including product manufacturing, service industry, and retail operations (e.g., convenience stores and post offices). MDMs have graphical user interfaces. Components of an MDM include 1) a database management module to maintain the application's input data parameters and output data performance measures; 2) a simulation engine to represent the dynamic interaction between the elements of a system, such as, the people, equipment, material, information and energy; 3) animation to visualize how the system reacts to changes in input parameters; 4) an environmental design layout module for calculating physical space requirements to accommodate new equipment or process changes; and 5) a financial module which transforms operational performance measures into financial metrics to assess the return on investment for the evaluated changes.
The output from a MDM indicates the predicted performance of the system using metrics that are most meaningful to the decision-maker. The output includes operational performance measures, such as, queuing times or sizes, equipment utilization, number of stock-outs, and customer system times as well as financial metrics, such as Internal Rate of Return (IRR), Net Present Value (NPV), and Payback Period.
There are no MDMs that are currently available to characterize an existing or future retailer's store checkout process or entire convenience store's operations that attempts to solve the complex design and operational problems.
There are no computer software applications that are currently available to address complex convenience store design and operational problems using the methodology and features provided by the present invention. Thus, a need exists in the art for a CSEM which has the flexibility, features and functionality to address strategic issues relating to convenience store design and operational issues.